This Report was printed with soy ink on FSC certified ... · 2010 Hana Bank Sustainability Report Elemental Chlorine Free paper(ECF) This Report was printed with soy ink on FSC certified

2010 Hana BankSustainability Report

This Report was printed with soy ink on FSC certified paper, produced with eco-friendly method. Elemental Chlorine Free paper(ECF)

100-2 Ka Euljiro, Chung-ku, Seoul, Korea 100-719 T 82-2-2002-111 www.hanabank.com

▒ Reporting Framework

This report has been prepared in accordance with the G3 Guidelines of the Global Reporting Initiative (GRI), meeting

the conditions to be declared as A+ level reporting. As required by the G3 Guidelines, Strategy and Profile, Management

Approach, and Performance Indicators have all been included in the report along with the 16 additional indicators in the

Financial Service Sector Supplement. You can refer to the GRI Contents Table on the Hana Bank website for more details.

This report has been assured by an independent organization.

▒ Reporting Period

This report presents the sustainability management activities undertaken by Hana Bank from January 1 to December 31,

2010. However, the report touched upon some activities that did not take place in the said period, since they have the

potential to influence stakeholders in the decision-making process. The business performance of overseas subsidiaries

was not covered in the 2010 Sustainability Report.

▒ Reporting Scope

The print version of the 2010 Sustainability Report is complemented by the relevant content on the Hana Bank website.

We tried to focus on major issues in the print version to enhance readability. For more detailed information and data,

you can refer to Hana Bank Sustainability Management Website. (www.hanabank.com > Overview of Hana Bank >

Sustainability Management)

▒ Process for Preparing the Report

A task force was established to draw up the report. Members of the task force reflected diverse views of our stakeholders

in the process of selecting major issues to be addressed in the report.To secure reliability in the reporting process and

the contents of the report, we had the report assured by an independent organization. You can find the result of the

assurance on pages 64 and 65. Hana Bank 2010 Sustainability Report is available both in Korean and in English. You may

request a paper copy or download an electronic version from the official website (www.hanabank.com>Overview of

Hana Bank>Sustainability Management>Sustainability Report).

02 CEO Message

06 Sustainability Management Highlights

22 Sustainable Finance

38 Sharing Bank

56 Talent Management

66 Third Party’s Assurance Report

04 Overview of Hana Bank

08 Sustainability Management System

30 Culture Bank

48 Eco-friendly Bank

62 Key Performance Data

Hana Bank 2010 Sustainability Report is our fourth sustainability report and first Communication

on Progress (COP) since the company joined the UN Global Compact. On our journey to become

Asia’s leading financial group, we endeavor to fulfill our social and environmental responsibilities

as well as to generate economic benefits. We release 2010 Sustainability Report to provide our

stakeholders with information on our sustainability management activities and achievements in

the year 2010.

2010 Hana BankSustainability Report

CEO Message

Hana Bank succeeded in leaving the global financial crisis behind in the year 2010 with its

profits returning to the pre-crisis level. Throughout the history of operations, Hana Bank has

accumulated valuable experiences of achieving growth by turning crisis into opportunity.

The previous year was no exception. The growth of the company was driven by passionate

employees, who spared no effort to improve profitability by concentrating on sales and raise

efficiency by cutting down on expenses.

Getting back to the basics works wonders in times of trouble. This is a belief embedded in our

corporate culture. Solutions are not far away when we adhere to basic principles. The rapid

dissemination and diversification of information influences the financial needs of our clients. In

an effort to meet the changing needs, Hana Bank has introduced new financial products and

services including smart phone banking.

Serving the community is not an option any more but an integral part of corporate

management. Hana Bank is engaged in a wide array of activities to serve the public benefit

and the environment as a member of the UN Global Compact. We are making efforts to

provide environmentally sound economic values to our shareholders, employees, and the

communities we serve. We will continue to improve our sustainability management system

and step up efforts to produce better social and environmental benefits.

We will continue to advocate the significance of the sustainability system and entrench the

value in the corporate culture to engage more employees in our efforts to discharge social

and environmental responsibilities.

Thank you.

President & CEO Kim, Jung Tai

Hana Bank has achieved rapid growth on the back of

differentiated products and services. We are leading the

Korean financial market through our premier comprehensive

financial services network and doing our utmost to establish

ourselves as a truly global financial institution.

Hana Bank is putting a great deal of effort into boosting business performance. The

outcome of the effort as of the end of 2010 is summarized as follows. (Please refer to

the chapter on the Key Performance Data on page 62 for more details.)

We provide following products and services

Hana Bank is a wholly-owned subsidiary of the Hana Financial Group Inc. (HFG) with 4

subsidiaries including Hana Bank (China) Co. Ltd

Credit Rating

Net Income

9,851billion KRW

CaS&BR**

106.23%

Return on Equity

10.47%

Asset per Employee

19,551million KRW

BIS Capital Adequacy

Ratio

14.04%

NIpE***

122

S&BLR*

1.50%

Business Performance

Products and

Services

Hana Bank’s

Operation Status

Overview of Hana Bank

Hana Financial Group Inc.

Hana Daetoo Securities Co.,

Ltd.

100.00%Subsidiary Unlisted

Banking

S-Line Installment Savings, Hana Charitable Account, Hana Dream Tree Installment Savings, Big Pot Account, etc.

Personal Loans

Mortgage One Loan, Hana Mortgage Loan, Interest Safety Zone Loan, Transfer Loan, etc.

Corporate Loans

Purchase Payment Loan, E-Purchase Loan, Receivables Collateral Loan, etc.

Trust

Money Trust, Property Trust, Public Trust

Foreign Exchange

Exchange Rate & Transaction Fee Discount Service, Web-based Foreign Exchange Service, etc.

Bancassurance

Pension Savings Insurance, Children’s Insurance, etc.

Fund(Collective Investment Stock)

Stock Type, Mixed Type, Bond Type, MMF, etc.

Card

Credit and Check Card Recruitment, Work as an Agency

The credit ratings of Hana Bank assessed by leading credit rating agencies are as follows

Hana Bank’s

General Status

million KRW

Hana Bank

Co., Ltd.

100.00%Overseas Local Corporation

Hana Capital Co., Ltd.


Hana Bank


* share

Hana HSBC Life Insurance

50.00% + 1s*Subsidiary Unlisted

Hana Institute of Finance

100.00%

Subsidiary Unlisted

Hana I&S

100.00%

Subsidiary Unlisted

Hana SK Card

51.00%

Subsidiary Unlisted

Hana Daol Trust

58.00%

Subsidiary Unlisted

PT Bank Hana

75.10%Overseas Local Corporation

Hana

Funding Ltd.

100.00%Listed on Singapore Exchange

Taesan LCD

61.26%Listed

02 Branch Office Status (Data from Financial Supervisory Service)

01 Employee Status (As of the end of 2010 / Excluding employees on secondment)

Changes over Last 3 Years Moody's Fitch S&P

Long-term Short-term Long-term Short-term Long-term Short-term

2010 A1 P-1 A- F2 A- A-2

2009 A2 P-1 A- F2 A- A-2

2008 A1 P-1 A- F2 A- A-2

Category Domestic Overseas Total

Executives 58 58

Employees (Regular + Non-Regular)

9,175 49 9,224

Regular Employees 7,997 11 8,008

Non-Regular Employees 1,178 38 1,216

Total 9,233 49 9,282

Category Branch Offices

Sub Offices

Administrative Offices

Total

Domestic 615 35 0 650

Overseas 4 0 3 7

2010 Hana Bank Sustainability Report 04 + 05

* Standard and Below Loan Ratio** Coverage against Standard and Below Ratio*** Net Income per Employee

Sustainability Management

Highlights

2009.12 Hana Bank contributed 10 billion KRW to launch the Hana Smile

Microcredit Foundation in December 2009. The microcredit business

provides unsecured loans to people in the low-income bracket to help

them stand on their own two feet. We will continue to use our utmost

endeavor to help the poor help themselves and add value for the

community.

2010.3 Hana Bank established Hana High School in March 2010, the first

independent private high school in Seoul, equipped with a concert hall

and a gymnasium for afterschool art and sports activities. Hana High

School provides scholarships to 30 % of students with priority given to

those from low-income families in an effort to narrow inequalities in

education.

2010.3 Hana Bank declared the Labor-Management Special Pledge

for the Development of the Bank in March 2010. At the ceremony,

the representatives of the labor union and the management pledged

to cooperate in order to grow the company into a top-tier financial

institution by strengthening the bank’s presence in the market and

boosting competitiveness.

2010.4 Hana Bank, a frontrunner in the race to develop financial

products promoting environmental stewardship, unveiled the Hana

Installment Savings Account Sponsoring the Suncheon International

Garden Expo 2013 in collaboration with the city of Suncheon. 0.1% of

the account balance goes to projects designed to build facilities for the

Expo and preserve Suncheon Bay, and the account holders can receive

a range of benefits as well.

Inauguration of

the Hana Smile

Microcredit

Foundation

Opening of

Hana High School

Release of the Hana

Installment Savings

Account Sponsoring the

Suncheon International

Garden Expo 2013

2010.10 Hana Bank was designated as “Korea’s Most Respected

Company” by the Korea Management Association Consulting (KMAC)

for 5 consecutive years, which entitled the company to a place in the

Hall of Fame. We earned the recognition thanks to our efforts toward

community contribution and shareholder value creation as well as our

socially responsible activities. Going forward, we will continue to strive

to maintain our status as the nation’s most respected company.

2010.12 Hana Bank opened a brand flagship store in the downtown area

of Myungdong, Seoul under the concept of a “Bank Growing Trees.”

The store will serve as a focal point for disseminating messages on

finance, the environment and community contribution. Donations from

visitors will go to efforts to preserve mangrove forests, which are known

as the earth’s carbon sinks. We run the donation drive in collaboration

with the National Committee for the Republic of Korea of the UNEP, the

environmental arm of the United Nations.

2011. 2 Hana Bank was voted as the Best Private Bank in Korea in 2011 by

Euromoney, an influential finance magazine, in recognition of its strategic

products for PB and customized asset management programs. Winning

the honor 7 years running, we will better serve our clients through

differentiated comprehensive asset management services.

Hana Bank Brand Flagship Store Launch

Designated as

Korea’s Best PB by

Euromoney for the 7th

Consecutive Year

Induction into the

KMAC “Korea’s Most

Respected Company”

Hall of Fame

‘Labor-Management

Special Pledge for

the Development of

the Bank’ Declaration

Ceremony


Sustainability Management System

Sustainability Management is a leading paradigm which takes into account not just

financial aspects, which is a traditional corporate concern, but also non-financial issues,

such as ethics, the environment and social problems, with an aim to enhance the value

of corporate activities and community services. Since our foundation, we have taken the

lead in sustainability management as a sound economic player and a responsible corporate

citizen. We have been showcasing best practices in sustainability management through the

establishment of a sustainability management value system, opinion gathering from various

stakeholders, global-level engagement including accession to the UN Global Compact and

the UN Environment Program Finance Initiative (UNEP FI), ethical management and risk

management.

Hana Bank has been advocating the cause of sustainability management by establishing a value system

composed of Vision, Mission, Management Principles, Founding Principles, and Essential Virtue for Hana

Employees. In particular, the 4 missions, that is, Customer Satisfaction, Employee Value Creation, Maximization

of Shareholder Value, and Community Contribution, are a testament to the effort of Hana Bank toward

sustainability management. Moreover,Hana Bank has grown the business on the back of the three founding

principles: Independence, Autonomy, and Enterprising Spirit. These principles will continue to guide us in our

future endeavors to develop into a financial institution with a strong presence in Asia.

Sustainability Management Value System

Hana Bank gathers views from diverse stakeholders to reflect them in corporate management. We

endeavor to continue to improve relevant systems in order to allocate diverse human and financial

resources according to the needs of stakeholders.

Gathering Opinions from Various Stakeholders

01 02

Business Partners

Employees

Govern -ment

Share- holders

Local Communi

-ties

Various Stakeholders

4. Implementation Carry out plans and report results

1. Listening

Listen to stakeholders’ expectations

2. Decision-Making

Establish a set of plans to respond to stakeholders’ expectations

�

�

Present plans to stakeholders,

show commitment and build consensus on evaluation indicators

Customers

Premier Comprehensive Financial Services Network Vision

Independence : Independent Decision-Making

Autonomy : Pursuit of Independence and Autonomy

Enterprising Spirit : Responsible Management Under the Strict Self-Control

Customers: Pursuit of Customer Satisfaction as a Financial Partner

Employees: Employee Value Creation as a Pleasant Workplace

Shareholders: Maximization of Shareholder Value as Business Partner

Communities: Community Contribution as a Leading Financial Institution

Mission

Management Principles

Respect for People, Customer-First, Market Leader, Achievement-Oriented

Founding Principles 3. Presentation


The UNEP Financial Initiative, which was undertaken in 1991 by the UNEP, is a voluntary

agreement of financial institutions on environmental sustainability. Around 169

international institutions and 7 domestic businesses are participating in the program.

Hana Bank signed the UNEP FI Statement and joined the Initiative on September 5,

2007. The UNEP FI Statement consists of three categories: Commitment to Sustainable

Development; Environmental Management and Financial Institutions; and Public

Awareness and Communication.

▶Ten Principles of the UN Global Compact

The UN Global Compact is a campaign initiated by the former UN Secretary

General Kofi Annan to call for responsible business activities. Companies join the

Compact on a voluntary basis but they are obliged to report their activities and

plans on the 10 Principles of the UN Global Compact. The 10 Principles require

businesses to guard against human rights abuses, observe basic labor rights and

eliminate all elements of discrimination, uphold environmental stewardship in

their business activities, and work against corruption in all its forms. The Principles,

which have already become part of business administration at Hana Bank,

present us with clear directions in sustainability management. We will continue to

endeavor to put the principles into practice and set examples for others to follow.

03 Accession to the

UN Global Compact

and the UNEP FI

04 Transparent Ethical Management

Commitment to Sustainable Development(4 principles)

Public Awareness & Communication (6 principles)

Environment Management &

Financial Institutions (7 principles)

Hana Bank has set a goal of growing into a premier financial institution

in the 21st century through ethical and creative corporate culture and

sustainability management. To this end, we have established a Code

of Ethics, which identifies the values and ethical standards for the Bank

to pursue and the basic principles for employees to observe in their

business activities. The employees of Hana Bank are driven by a strong

sense of mission and responsibility and pursue the following 6 goals

while upholding honesty and trust.

3 Categories of the ‘UNEP FI’ Statement

Hana Bank’s Ethical Management Programs

· Securities Accounts and Transaction Records Report System

· Gifts and Bribes Report System

· Code of Ethics Promotion System

· Best Ethical Management Case Contest

History of Revision to the Ethical Guidelines

1991 | Code of Ethics for Employees and Guidelines

2001 | Guidelines on Conduct

2002 | Code of Ethics for Hana Employees

2009 | Revision to the Code of Ethics

June 2010 | Cyber Training on Ethical Compliance for All Employees

July 2010 | Biannual Ethical Compliance Self-Assessment

Business should

01. support and respect the protection of internationally proclaimed human rights; and

02. make sure that they are not complicit in human rights abuses

Business should uphold

03. the freedom of association and the effective recognition of the right to collective bargaining;

04. the elimination of all forms of forced and compulsory labor;

05. the effective abolition of child labor; and

06. the elimination of discrimination in employment and occupation

Business should

07. support a precautionary approach to environmental challenges;

08. undertake initiatives to promote environmental responsibility; and

09. encourage the development and diffusion of environmentally friendly technologies

Businesses should work against corruption in all its forms, including extortion and bribery

Human Rights

Labor Standards

Environment

Anti-Corruption


▶ Integrity of Hana Employees

Honesty and integrity are the most fundamental values, especially in the financial industry, which is

firmly rooted in credit and trust. Honesty is the highest value which is integral to earning recognition,

trust and loyalty from customers and ultimately from society. Along with honesty, transparency and

sincerity, integrity is an essential virtue for the employees of Hana Bank who adhere to the basic of

the basics.

Employees at Hana Bank are armed with high moral principles and seek to act with

honesty and integrity under all circumstances. Only those with an honest and balanced

way of thinking can make right decisions and show good judgment with respect to

what they should do or not do. Honesty is a source of energy that uplifts individuals,

ensures the bright future for an organization and enriches our society. To Hana

employees, honesty is a value to practice, a precious identity, and the highest virtue

through which they can earn trust and loyalty from customers.

Transparency Honesty Sincerity Basic of the Basics

Honesty and Integrity

05

▶ to work solely to serve the best interests of customers and the company

▶ to create an open internal communication to assist employees in their efforts to produce the best outcome

▶ to earn trust from customers, shareholders and society through transparent management practices

01. Honesty of Hana Employees is

▶ Honesty of Hana Employees




Hana Bank is equipped with a responsible management system which is designed to

maximize organizational synergy and operational efficiency. We assist managers in

their role to take the lead with an ultimate goal of maximizing corporate value. The

shareholder-centered management enables us to create and increase shareholder value

and enhance their rights and interests. The Board of Directors is charged with making

decisions on what is stipulated in the Statutes and regulations, what they have been

commissioned to do at shareholders’ meetings, basic management directions, and

major issues in operations, in addition to its supervisory role for the work of directors.

The Hana Bank Board of Directors is composed of 9 members including 5 external directors. According to the

Statutes, external directors are elected at shareholders’ meetings from the list of candidates recommended by

a nomination committee. Candidates must possess rich knowledge and experience in management, economics,

accounting, laws and relevant technologies. External directors convene exclusive meetings to exchange views on

overall management issues and collect recommendations to propose to the management. All directors are required

by the Commercial Law and the Statutes of the company not to be involved in businesses similar to the nature of

the company without the permission of the Board of Directors to prevent conflict of interest.

Hana Bank has established the Management Advisory Committee in an effort to put customer satisfaction at the heart

of business operation. The Hana Bank Management Advisory Committee is composed of the nation’s top experts

armed with knowledge and experience. We have in place the IT Advisory Committee designed to assist the company in

providing leading financial services based upon a solid IT infrastructure.

President and CEO

Shareholders’ Meeting

Board of Directors

BoD Steering Committee

Business AdministrationGroup

Business Administration HQ Corporate Banking HQ Capital Market HQ

Chungcheong Business HQ Corporate Business HQ

Information & Strategy HQ

Review HQ

Management Support HQ Capital Management HQ

HR Development HQ

Youngnam Business HQ WM HQ

Risk Management HQ

Trust HQ

Customer Support Group

Retail Banking HQ

Medium Business HQ

Small Business HQPB HQ

Retail Banking Sector

Capital Market Group

Risk Committee Audit Committee

Business Consultation Body

Compliance OfficerCompliance Support DepartmentExecutive Support Office

Review Group

Review HQ

Trust HQ

Business Promotion Group

Sales Promotion HQ

New Business Promotion HQ

Business Sales Group

Real Estate Financing HQ

Inspection Department

Corporate Banking Sector

Corporate Governance

06▶ Board of Directors

▶ Management Advisory Committee and IT Advisory Committee

Executive Directors

Jung Tae Kim CEO of Hana Bank

Vice President of

Hana Finance Group Household Sector

Head of Hana Bank


Vice President of Hana Finance Group


Hana Bank Internal Auditor

External Directors

Members of the ManagementAdvisory Committee

Members of the IT Advisory Committee

Hyung Ju Kim Professor from Seoul National University

Department of Computer Science

Yong Su Park Vice President of Bearing Point

Do Hwan Bae Professor from KAIST

Department of Electronic Data Processing

Byung Tae Lee Professor from KAIST

Graduate School of Techno Business

Seung Ho Tak Head of Seoul University

IT Card Research Center

Jae Min Han Professor from Korea University

Department of Business Administration

Sung Soo Kim Professor from Seoul National University


Bock Hyun Back Professor from Seoul National University


Jun Ho Ham Professor from Yonsei Univeristy

Graduate School of International Studies

Young Sup Kim Advisor of a Law Firm Tae Pyung Yang

Young Gi Kim Auditor of Consus Asset

Management Co., LTD.

Jong Won Park Professor from Korea University


Suck Hyung Woo CEO of Sindoh

Sang Bin Lee Professor from Hanyang Univeristy


Chang Sup Lim

Seon Ho Jo


Board of Directors

Establish the internal control

system and operational guidelines

(Report, Submit)(Report, Deliver)

• Access the internal control system and propose recommendations• Report or submit recommendations to BOD meetings • Finance, functions, compliance, management, IT audit

• Establish the internal control system

and operational policy

• Coordinate and integrate functions across groups and HQ

• Establish the internal control policy plans

• identify and improve weak spots in the internal control system and conduct

monitoring

• Establish and conduct internal control policy

Groups and HQ

Business HQ

Branches

• Review the operation of the internal control system (monitoring)→ Report results to the Audit Committee→ Propose recommendations on operational problems

• Assist the compliance officer→ Implement internal control and compliance programs

• Credit/interest rate/liquidity/market/operational risk integration

• Financial reports and internal control

• Security

Compliance Officer

Compliance Support Unit

Risk Management Unit

Accounting Office

Security Management Unit

(Assess)

(Review)

• Assist the Audit Committee • Prevention Guidelines for financial accidents • Regulation for self-audit and auditing • Manual for self-audit and internal control

Inspection Unit

External Auditor

President & CEO Audit Committee

Top-DownEstablish risk policy

Set & distribute limits

Bottom-upReport risk status

Report limitsmanagement status

Risk Committee

Risk Management Office

Credit RiskManagement Unit

Business HQ

Middle OfficeFront Office Back Office

Credit-Rating TeamComprehensive

Risk Management Team

Hana Bank runs a comprehensive risk management system to prevent potential risk in

management activities and promote management stability and stakeholder value. An

advanced structure and systems have been established for the specific and practical

management of all procedures with a particular focus on preemptive risk management. We

have installed the Risk Committee under the Board of Directors to ensure transparent risk

management. Two main pillars of the risk management system are the Risk Committee,

which sets risk limits, and the Risk Management Committee, which monitors compliance

with risk limits and reviews risk status on a monthly basis. The management and report of

ordinary risks is the responsibility of the Middle Offices of each business HQ and the Risk

Management HQ, which is comprised of the Comprehensive Risk Management Department,

the Credit Risk Management Department and the Credit-RatingTeam.

Hana Bank convenes the Risk Committee meeting on more than one occasion every quarter in order to set limits for credit risk,

market risk, and operational risk and review risk status on a regular basis. An internal risk control system, which encompasses the

high-level management at the top and business units at the bottom, ensures a systematic risk management. The internal risk control

system helps protect the Bank’s assets, secure accuracy and reliability for accounting data, promote the efficient use of resources,

and guide and supervise employees in their compliance with relevant rules and regulations. Multiple bodies and individuals, such

as the Board of Directors, the President of the Bank, the Audit Committee, the Compliance Officer and its support body, the

Compliance Support Team, are involved in the management of the internal control system for the purpose of ensuring mutual

control. The position of a compliance officer is required in accordance with the Banking Act. The Compliance Officer monitors the

compliance of the Bank with relevant laws and regulations, reviews management soundness, ascertains whether employees and

executives observe basic procedures and standards to protect shareholders and customers, and reports to the Audit Committee

when violation of internal control standards has been identified.

Risk management based upon systematic risk management and internal control systems has led to the development of an internal

model-based risk management system for market risk, which earned an approval of the Financial Supervisory Service. Furthermore,

we are managing an adequate level of risk assets through a system built for preemptive response to risk in a rapidly changing

financial environment, while fostering a risk-sensitive culture to manage potential risk resulting from changes in the business

environment and strengthen the risk-related capacity of all employees. Through continuous efforts to expand capital, our BIS ratio, a

key financial soundness indicator, reached 14.04% as of the end of 2010.

Risk Management

07

▶ Risk Management Structure and System

▶ Internal Control System

Risk Management HQ


In the year 2001, Hana Financial Group set up a vision of building a “Premier Comprehensive Financial

Services Network in the 21st century.” To realize the vision, the company established a model where HFG

grows together with its customers by providing differentiated products and services based upon projections

on changes in financial markets at home and aboard. A decade later, in 2011, HFG saw a real opportunity to

secure a prominent position in domestic and overseas markets and declared its commitment to a great leap

forward in that direction through the adoption of the slogan “Go Beyond Hana (One).”

Short-term

Strategy

Build infrastructure and reinforce capabilities

for sustainability management

Main Tasks

- Systemize activities related to sustainability

management

- Increase employees’ awareness of sustain-

ability management and strengthen relevant

capabilities

- Establish communication system for

stakeholders

- Participate in global initiatives on sustainability

management

Strategy

Ingrain sustainability management into the

organization by establishing a management

system with an emphasis on sustainability

Main Tasks

- Implement community services strategically

- Strengthen and promote financial products

that benefit the environment and the public

- Expand activities for the environment and

green business

- Launch a business unit dedicated to

sustainability management

Strategy

Achieve the company-wide expansion of


Main Tasks

- Diversify community service programs

- Expand and apply sustainability auditing

company-wide

- Engage actively in global initiatives on


- Integrate social and environmental issues into

the risk management system

- Build an evaluation system for sustainability

management

Hana Bank will step up efforts to improve its sustainability management system

and embed it throughout the organization as an integral element of the corporate

culture. Our ultimate goal is to incorporate sustainability management into the bank’s

management activities through the implementation of short-term, mid-term and long-

term strategies. We will strive to discharge our social obligation as a leading financial

institution by focusing on activities of social and environmental significance, such as

microcredit loans, the “Green Bank on the Move” campaign, and the development of

environmentally-friendly products.

Advocate of Sustainability Management

09Go Beyond Hana

08

A Slogan Advocating

Innovation

Openness

Globalization

Convergence

“Go Beyond Hana” does not pursue a gradual change. It is a

slogan for fundamental innovation, starting everything afresh

from scratch. It symbolizes the beautiful philosophy of the “idea”

and conveys commitment to aiming for more than Hana (one).

“Go Beyond Hana” will lay the foundation for HFG to start the

journey in 2011 toward a leading financial institution with a

strong presence in Asia. “Go Beyond Hana” is supported by 3

pillars.

“Go Beyond Hana”: Openness

A global financial group must be

prepared to work with employees

and customers from diverse

backgrounds and cultures. In this

context, diversity encompasses

not just ethnicity, gender,

age, nationality, or physical

conditions, but also ways of

thinking and customs. Embracing

and respecting differences in all

aspects – that is the first pillar of

“Go Beyond Hana”: Openness

“Go Beyond Hana”:Globalization

Gaining the recognition as

Asia’s top financial performer

means there will be a lot of

opportunities to serve employees

and customers of d iverse

nationalities. To prepare for

these opportunities, we need

to be armed with the level of

knowledge and capacities to

compete on the global stage.

Deve lop ing mindsets and

capacities that are competitive

in the global market – that is

the second pillar of “Go Beyond

Hana”: Globalization

“Go Beyond Hana”: Convergence

Convergence does not mean

simple mixture of different

e l ement s . Go ing beyond

the barr iers of industr ies,

generations, and cultures to

real ize “innovation-driven

changes” and “re-creation

through combination” – that is

convergence in its true sense.

Looking into various areas with

flexible and open mindsets

and str iv ing to search for

opportunities for cross-industry

or cross-field convergence – that

is the third pillar of ”Go Beyond

Hana”: Convergence.

Mid-term

Long-term


Sustainable Finance

.

Hana Bank seeks to implement sustainable financial practices which aim to achieve social

integration by preserving the environment, addressing social challenges such as poverty and

low fertility rates, and providing quality financial services for companies in various sectors

and people from all walks of life. Our sustainable finance program can be divided into several

different categories: financial products for the common good; products for small- and

medium-sized enterprises (SMEs); financial assistance to address social issues; microcredit for

financial inclusion; green earth products; products for common concerns; and smart services

to please more customers.

- Provide practical financial support for SMEs through cooperation between large corporations and the

financial institution

- Prepare systematically for the demand of large corporations resulting from mutual growth agreements

to be pursued by the Fair Trade Commission

- Provide loans to green businesses with capital raised through green deposits introduced by

the government’s green growth policy

Hana New Growth Engine Loan CL

- Boost the image as a green bank : Boost the image of the Bank supporting green growth industries

related to new growth engines and providing green financing

- Support the government’s policy : Cooperate in the government’s policy toward nurturing industries

related to new growth engines

- Support the development of 17 New Growth Engines* in 3 areas designated by the Ministry of

Knowledge Economy in 2009

38 customers, 175.1 billion KRW

● Loans for businesses involved in photovoltaic power plants

● Facilitation of financing for the renewable energy industry and raising awareness of the environment industry among financial Institutions

Hana Solar Loan

● Contribution of 0.1% of the account balance to build facilities for the Expo and preserve Suncheon Bay

Hana Installment Savings Sponsoring the International Suncheon Garden Expo 2013

● Interest rate reduction up to 0.3% for customers with eco-friendly lifestyles

-0.3°c Loan

Hana Bank places great emphasis on environmental considerations in

developingfinancial products and delivering services. We apply environmental

screening standards when processing applications for loans and other types of

assistance and focus on developing earth-friendly products and services. We have

unveiled specialized products, such as the ‘Hana Solar Loan (2007)’ and the ‘Hana

Installment Savings Account Sponsoring Suncheon International Garden Expo 2013

(2010).’

Hana Win-Win Cooperation Corporate Loan

Eco-friendly Financial Products

01Products for the Government’s Sustainable Finance Policy

02

▶ Loans Provided for Photovoltaic Power Plants including Hana Solar Loan

▶ Financial Products Addressing Environmental Issues

- Strengthen relations : Strengthen relations with SMEs without assuming any losses

- Secure new customers : Secure new business opportunities with SMEs who have not yet to do

business with the Bank

- Support the government’s policy : Support actively the government’s policy toward win-win cooperation

between large corporations and SMEs

Hana Bank, a partner in the government’s policy toward green management and cooperation for win-

win growth between large corporations and SMEs, is taking the lead in developing relevant products.

The prime examples are the Hana Win-Win Cooperation Corporate Loan, the Hana New Growth

Engine Loan CL, and the Hana Green Business Loan, with the last one still in the pipeline.

Hana Green Business Loan

- Boost the image as a green bank : Put into practice the Bank’s principle on green management and

boost the image of the Bank’s green management

- Support the government’s policy : Contribute to the national economic development by supporting

the government’s green growth policy

Objective

Expected

Results

- Green Tech Industries (6) : New and Renewable Energy, Low-Carbon Energy, Advanced Water

Processing, LEDs, Green Transportation Systems, High-Tech Green Cities

- High-Tech Convergence (6) : Broadcasting and Communication Convergence, IT Convergence

Systems, Intelligent Robots, New Materials-Nano Convergence, Biopharmaceuticals-Medical Devices,

Value-added Food Industry

- Value-Added Services (5) : Global Healthcare, Global Education Service, Green Financing, Content-

Software, MICE (Meeting, Incentives, Convention, Events) Tourism

NewGrowth Engines

*

(as of April 18, 2011)

Objective

Objective


Expected

Results

Expected

Results


Since 1972, Hana Bank has been running the Hana Happiness Sharing Public Trust, the only one of its

kind in the country designed to serve the interest of the public. The Hana Happiness Sharing Public Trust

consists of the Hana Dream Tree Public Trust, which supports children’s education, and the Hana Sharing

Love Public Trust, which is related to social welfare programs. A total of 11.3 billion KRW was executed as

of the end of 2010. Various other products for the common good are also available.

Hana HappinessSharing Public

Trust

Hana Dream Tree Public Trust

- Supply educational tools and aids for elementary school students in remote regions- Support educational facilities at special schools for the disabled

Hana Sharing Love Public Trust

- Support the underprivileged- Support multicultural households - Support non-profit social welfare organizations

150

100

0

2008 2009 2010

●●

●

▶ Total Amount Executed through the Happiness Sharing Public Trust (Unit: one billion KRW)

Serving the Interest of the Public through the ‘Hana Happiness Sharing Public Trust’

04

11.3 billion KRW

Hana Donation Bankbook

Products available on a temporary basis

Happiness Sharing SRI Equity Investment

Hana Bank contributed 10 billion KRW to launch the Hana Smile Microcredit Foundation in December 2009.

The microfinance of the Hana Smile Microcredit Foundation assists the entrepreneurial poor in their pursuit of

economic self-sufficiency by providing unsecured small loans. The business serves to achieve a goal set by Hana

Bank, “community contribution as a leading financial institution.”

▶ Numbers of Applications Approved (Unit: persons)

▶ Amount of Loans Approved (Unit: million KRW)

Expand the domestic microcredit market

Increase access to microcredit loans for

the working class

Fulfill Corporate Social Responsibility

Practice “Philanthropic Management”

through Hana Smile Microcredit Foundation

Support people with little access to

established financial institutions

Provide opportunities for the

working class with little access to

financial services

767 persons 2009 2010

0 500 1000

2009 2010

0 50 100

Microcredit for Financial Inclusion

03

6.6 million KRW

Although the market for SMEs decreased in the year 2010, Hana Bank provided loans amounting to 29

trillion KRW. In addition to raising the amount of loans for SMEs, we provide consulting services, fiscal

consultation and assistance in restructuring processes. Services for small-scale retailers are also available.

▶

▶ Products and Services for SMEs

▶

▶ Products and Services Introduced in the Year 2011

Hana Bank pursues sustainable financial practices which enable a growing number of customers to have access

to financial services with ease. Mobile banking services have been expanded for mobile devices including smart

phones and customers can access the Internet free of charge at wi-fi hotspots in all branch offices. We distinguish

ourselves with unique financial services, such as the Hana N Plaza, an innovative web-based marketing platform,

the Mobile Hana Bank, which visits customers, not the other way around, and banking services for expatriates

working in Korea.

▶ Places where the “Hana Mobile Bank”

can be located

Hana Bank plans to provide services for sustainable finance and expand the number of products that take into

account the environment and health, befitting the bank’s status as the “Green Bank on the Move.” Furthermore,

microcredit programs are also included in our expansion plan. In the year 2011, Hana Bank will increase the

portion of loans for SMEs to 2.6 trillion KRW by contributing 50 billion KRW to the Korea Credit Guarantee Fund

and the Korea Technology Finance Corporation. In addition to financial support, Hana Bank will do its utmost to

facilitate business activities of SMEs by building viable cooperative networks with SMEs.

● Opening a counter dedicated

to Chinese nationals

● Weekday after-hours and

weekend services

● Hiring Chinese nationals

at call centers to provide financial

services for Chinese customers

● Pay-Easy Service for Vietnamese

and Mongolian migrant workers

▶ Banking Services for Expatriates

Hana N Plaza(www.hananplaza.com) Service

● Information on products and services

● Provision of 60 specified financial products

through affiliated companies

● Online PB Service

● Financial Consultation Service

● Expressway service areas during holidays

● Areas where emergency relief,

such as food relief, takes place

● Tourist spots during high season

The Win-Win Growth Package Loan provides funding to suppliers of large corporations based upon the

credit of their customers, that is, large enterprises, from the point of receiving orders to the point of

receiving payments. It is highly regarded in the market in that the loan distinguishes itself from similar

types of existing products by assisting 2nd-tier and 3-tier suppliers in securing liquidity relatively easily

and benefiting from low interest rates.

● 2nd place at the 16th Mail Economy Financial Products Awards

● 1st place at the 2011 E-Daily Financial Products Awards

● 2nd place at the Financial Supervisory Service New Financial Products Awards

▶ Awards for the Win-Win Growth Package Loan

Loans for SMEs

05Cutting-Edge Smart Services to Meet the Needs of More Customers

06

Constant Effort to Reduce Environmental Degradation and Economic Inequality

07

Products and Services

● Win-Win Growth Package Loan

● On-lending loans

● Hana Turn Around Program

● Franchise loans

Objectives

● Supply liquidity for suppliers to

large corporations

● Provide funding for new growth

engine industries

● Support voluntary restructuring

● Assist small-scale retailers

Products and Services

● Support for job creation for the young

● Loans funded by the Korea Credit

Guarantee Fund and the Korea

Technology Finance Corporation

●Guaranteed loans for culture-related

businesses

Objectives

● Provide benefits such as a reduction in

interest rates for job-creating companies

● Provide loans to high-performing SMEs in

cooperation with the Korean Credit

Guarantee Fund and the Korea Technology

Finance Corporation

● Provide funding for the production of

movies, animations, dramas, etc.


220,000 persons

▶New customers for Hana N Plaza

(as of the end of 2010)

Hana Bank’s art and culture quarterly recently published its 100th issue

Culture Bank

Hana Bank, which appreciates the true value of art and culture and desires to share enriching experiences,

has been at the forefront of enhancing the quality of life through cultural programs. Culture-related activities

at Hana Bank have grown significantly both in quality and quantity. In 1987, we organized cultural seminars

for women, the first of its kind in the country, which was followed by the opening of the Hana Love Gallery

in 1991 and the launch of the Hana Cultural Affairs Advisory Committee in 1992. The cultural activities of Hana

Bank are largely divided into 3 categories: programs for customers and employees; programs for the public

and the community; and programs for the culturally underprivileged. Our programs provide opportunities

for more people to experience the pleasure of culture enriching lives, helping us to get one step closer to a

culturally wealthy society where corporate activities are compatible with cultural activities.

Hana Bank strives to provide a wide range of musical opportunities for the general public and the local community. Hana

Classic Academy arranges courses for music lovers and HFG customers. The courses are composed of performances by the

country’s leading artists and lectures by Park Eun-Hee, the music director of the Korea Festival Ensemble. Approximately 3,000

students participated in 21 courses between 2000 and 2010. Hana Yeouido Classical Concert is a free concert for the public,

especially residents and office workers near the Yeouido region. About 500 people in a year join this concert combining

classical music and theatrical elements. Hana Bank also sponsors Seoul Philharmonic Orchestra as part of its mecenat

programs to support the art community. We donated 2.56 billion KRW between 2006 and 2010. Hana Children’s Economic

Musical helps elementary school children learn how the economy works through performances combining dance, songs, and

economic education. The musical Jack and the Magical Wallet was performed 33 times in 2010 for 12,440 school children.

Hana Bank’s art sponsorship also provides various opportunities for the community to appreciate art. Hana Cyber Gallery,

which virtually exhibits the artworks on the Hana Collection, a free exhibition of various artworks in the “Hana Love Gallery”

in Pyungchang branch, a head office turning into an innovative art building called Art Museum in Your Neighborhood allow

customers of Hana Bank to enjoy various artworks. Quarterly 「Hana Bank」is published every March, June, September, and

December with art & culture contents. It is also available in major bookstores at 3,000 KRW as a “trans-trend magazine” with

all proceeds going to community contribution programs. Hana Calendar Design Contest departs from conventional ways

of designing calendars, allowing for financial institutions to engage customers, students and designers in the process of

designing bank calendars. 14 contests were held between 2007 and 2010, and the contest in 2010 received 384 entries.

• Hana Cyber Gallery: Virtual exhibition of the artworks on the Hana Collections

• Quarterly 「Hana Bank」: High-class quarterly published by Hana Bank, specializing in art & culture

• Hana Calendar Design Contest: Departure from conventional ways of designing calendars, allowing financial

institutions to engage customers, students, and designers in the process of designing bank calendars

• Sponsorship for Seoul Philharmonic Orchestra : Mecenat programs

to support the art community

• Hana Yeouido Classical Concert : Concert for the public,

especially residents and office workers near the Yeuido region

• Hana Classic Academy: Classical music courses for music lovers and HFG customers

• Hana Children’s Economic Musical :

Performance of the musical “Jack and the Magical Wallet,”

a combination of dance, songs and economic education

Sponsorship for Music

Providing Various Musical Opportunities

01Sponsorship for Art Providing Various Artworks in Everyday Life

02


Hana Yeouido Classic

Sponsorship for Seoul Philharmonic Orchestra

Quarterly Hana Bank

Hana Cyber Gallery

Hana Cyber Gallery

Hana Bank puts a great deal of effort into expanding opportunities for the culturally underprivileged to fulfill its mission as

an avid advocate for shared cultural experience. Programs in this category include a variety of sponsorships ranging from

“Mushroom,” a theater company offering free performances to music scholarships for children with developmental disorders

to the “Angel’s Visit,” a cultural performance program for children deprived of opportunities to enjoy cultural events.

Sponsorship for the Theater Company “Mushroom”

Free performances for socially disadvantaged groups including the disabled and adolescents of underprivileged households

Music Programs for Children with Developmental Disorders

Scholarships for musically talented children of low-income families with developmental disorders

Angel’s Visit

Free performances for socially disadvantaged groups including children in group homes, factory workers, and senior citizen households

Hana Bank, which boasts a reputation as a patron of art and culture, will continue to work toward a

harmony between the business world and the art community and make the most of the knowhow

it has accumulated in the process. We will maintain our frontrunner position in the race to bridge

inequalities in cultural opportunities through the expansion of support for culturally underprivileged

individuals and groups as well as for the public and the community. No effort will be spared on our

part to engage more of our customers and community residents in various Mecenat activities and

exhibitions to help them lead more enriching lives.

Support for the Culturally Underprivileged

03


Hana Classic Academy

Starting from the sponsorship for the 1998 National Soccer Team, Hana Bank has been an active advocate of the sport,

whose records include sponsorships for the World Cup bidding for the 2002 and 2022 Games, friendly matches for

the national soccer team, the Hana Bank FA CUP, FC Seoul in the K-League, and various amateur soccer leagues and

tournaments. The LPGA Hana Bank Championship, which took its first step in 2001, has grown into an undisputed major

event both in terms of history and scope over the last 10 years. In addition, Hana Bank is seeking to expand base for sports

by hosting various sports and recreational activities.

Soccer

- Official sponsor for the 2022 World Cup Bidding Committee

- Organization of events to promote success in the 2022 World Cup

bidding

- Opening of the Soccer Village

- 1.1 billion donation to the 2022 World Cup Bidding Committee

- Title sponsor for the match with Nigeria

- Donation of 500 Jabulani, the official match ball for the 2010 World Cup

- Contribution to the construction of the South Africa Youth Soccer

Stadium

- Increase in the prize money for the Hana Bank Championship, the nation’s

only LPGA tour, to USD 180 million

- Release of the official emblem for the “LPGA Hana Bank

Championship”

- Campaign to build a mature gallery culture for the “LPGA Hana Bank

Championship”

- Organization of the event “Love Birdie”

Golf

- Hana Bank’s CEO Cup Soccer Match

- KATA Members Tennis Match

- College Synchronized Dance Sports Competition

Sports for all

LPGA Hana Bank

Championship

Sports Sponsorship including Soccer and Golf

04

2010 Hana Bank Sustainability Reports 36 + 37

하나사랑봉사단의 저소득층 연탄기부 봉사활동 Hana Kids of Asia providing cultural and language education for children of multicultural families

Sharing Bank Hana Bank, a leading financial institution, believes community services to be one of its vital

missions. In the mid-1990s, the scope of its community outreach programs was expanded

to include such sectors as social welfare, culture, art, and education. Our activities to serve

the community culminated in the creation of the Hana Love Volunteer Corps in 2004, which

contributed to the culture of sharing and volunteering taking root in the company. In 2008,

the Adding Hana (One) Hope Campaign was launched, setting new directions in this important

cause. Hana Bank has been expanding its community outreach programs in two main

categories: community services and education and sports sponsorships.

Korea is home to 1.2 million expatriates as of the end of 2010. The advent of

multiculturalism has led Hana Bank to turn to activities aimed at creating a mature

multicultural society where its members appreciate cultural diversity. We launched

our support program for multicultural families on November 4, 2007 with the

Vietnamese Family Day. The support program gained momentum in 2008 through

the establishment of Hana Kids of Asia, an education program for children from

multicultural households. Hana Kids of Asia, which took its first step in Seoul in 2008,

opened in Incheon in 2009 and Ansan in August, 2010. Under the program, a total

of 55,000 bilingual story books were published to provide children from multicultural

backgrounds with opportunities to learn the languages and cultures of their parents.

In addition, books designed to raise understanding of multiculturalism are provided

free of charge for multicultural families and the general public and two public service

advertisements were produced to raise awareness of a multicultural society among the

public. As showcased in the examples above, Hana Bank is engaged in a vast array of

activities to contribute to the promotion of a multicultural society.

“Hana Bank implements a range of activities to contribute to building

a mature multicultural society, which appreciates cultural diversity.”

55,000

Number of Bilingual Story Books Delivered to

Multicultural Families

Hana Kids of Asia Saturday School, afterschool programs, cultural experience programs, counseling for children of multicultural families, language and culture text development for multicultural education

Publication & Distribution

of Bilingual Story Books Publish bilingual story books and biographies for children of multicultural families and distribute a total of 55,000 books

Multicultural Experience Instill pride in multicultural family members through puppet shows, artifact exhibitions, and traditional cuisine festivals

“Multicultural Day” Event Cultural performances and events for marriage migrant women

Public Service

Ad Campaign on

Multiculturalism

Raise awareness of multiculturalism through public service advertisement via print and broadcast media

Financial Service for

Expatriate Workers

Telephone counseling service in mother tongues of expatriates, translation of forms, opening of Hana N Plaza, diversification of services through affiliation with foreign banks

▶ 2010 Hana Bank’s Programs Supporting Kids from Multicultural Families

Promoting multiculturalism through public service advertisements

Support for Multicultural Families

01


Hana Bank hosts diverse events to teach children the basics of economics including a musical

performance titled ‘Jack and the Magic Wallet,’ which visited 150 elementary schools between April

2006 and December 2010, and the 2010 Hana Children’s Dream Festival. Moreover, an educational

website named the Hana City (www.hanacity.com), which opened in October 2008, has contributed

to a great number of children developing an interest in economics. As citizens of a virtual city, kids

can learn about basic economic concepts and experience how the economy works as they take part in

the process of production, savings and consumption. Recognized for its contribution as the country’s first

social network service education site, the Hana City won the Grand Prize for Community Contribution by

the Finance Sector in the Web Award Korea 2008. The Hana City went on to earn another achievement in

2009, when it was selected as a site recommended for adolescents by the Korea Communications Standards

Commission.

“Hana Bank focuses its efforts

on teaching children how the economy works.”

▶ 2010 Hana Bank’s Programs Supporting Economic Education

Hana Children’s Dream Festival

- Provide giveaways for the Hana Dream Tree Installment Savings

and the Hana Happy Birth Installment Savings

- Provide giveaways for fund products for children

and invitations to the jang Bo-go History Exploration

Hana Children’s Economic Musical

- Visit 150 elementary schools to stage a musical titled Jack and the Magic Wallet

Hana City - Provide hands-on experiences for diverse occupations customized for children

- Teach basic economics to elementary school children in higher grades

- Organize Economy Olympiads for elementary school children

Economic Education Programs

02


Economic Musical Titled Jack and the Magic Wallet

Hana Bank opened Hana High School in March, 2010. Hana High School, which is a boarding school,

runs English and other foreign language courses in the curriculum. It is equipped with a concert hall

called the Hana Art Center and a gymnasium for afterschool art and sports programs. Divided into

three categories of the International Course, the Specialized Course, and the General Course, the

school curriculum is taught in Korean and English. Since it was established by a financial institution,

such courses as economics, management, and international finance are also incorporated into the

curriculum. Students in the top 3 % of their middle school class are eligible to apply, whereas 20 % of

the number of students is set aside to admit students from underprivileged families including children

of households in the lowest income quintile and multicultural families. Scholarships are provided to 30

% of students with priority given to students from low-income families.

“Hana Bank established Hana High School

to contribute to society through talent fostering initiatives.”

Hana Financial Group inaugurated the Hana Smile Microcredit Foundation on December 21, 2009 to

narrow income disparities in society by providing startup capital to the financially underprivileged to

help them achieve economic self-sufficiency. The Hana Smile Microcredit Foundation contributes to

creating employment and added value in society by offering unsecured loans to people in the low-

income bracket. In 2010, loans and business support programs worth 9.7 billion were executed for

810 customers and the project is expected to grow further with the launch of the Hana Smile Hope

Volunteer Corps, a group of Hana employees who specializes in financial services for low-income

families.

“Hana Bank seeks to find solutions to low fertility rates resulting

from the burden of childcare expenses and the lack of nursing

homes and rehabilitation centers for the elderly population.”

Hana Bank recognizes low fertility rates and population aging as two key challenges facing our society,

which has led us to turn to practical solutions. We became the first domestic bank to make a direct

donation to a provincial government to help establish a public childcare facility called the Puruni

Childcare Center in 2008 and in the following year 2009, set another record of becoming the first

financial institution to establish an assisted living facility known as the Hana Care Center. At the Singil

Hana Puruni Childcare Center, which opened in September, 2008, 21 staff members run a facility which

can accommodate up to 148 children. At the Namyangju Hana Care Center, which opened in March,

2009, 64 care workers provide quality services for 74 occupants. We plan to expand these facilities with

a goal of adding 10 childcare centers and 20 assisted living facilities

“Hana Financial Group runs the Hana Smile Microcredit Foundation

to help financially disadvantaged individuals to start a business

and achieve economic self-reliance as part of its efforts to narrow

widening income disparities.”

An Independent Private High School, Hana High School

03Hana Puruni Childcare Center and Hana Care Center

04

Financial Inclusion through Microcredit Business

05


Hana High School’s Mentoring Club “God of Study”

Employees at Hana Bank participate in volunteering work under the banner of the Hana Love Volunteer

Corps. Some 3,000 Hana employees set aside a certain amount of their salary every month to

donate to the underprivileged and take part in various volunteering work. As of the end of 2010, the

membership of the Hana Love Volunteer Corps reached a total of 8,842 employees across the HFG,

of which 81.5%, or 7,210, were the employees of Hana Bank. Employees of Hana Bank share their

time and love on a regular basis for people who are subject to social exclusion in local communities,

including minor heads of household, children who are forced to skip meals, the disabled, and the

homeless and reach out to people living in low-income countries abroad. In 2010, the “2010 Add-Hana

(One)” volunteer campaign was conducted for one month from November 24 to December 24.

Hana Bank has been involved in community outreach in collaboration with other affiliates of Hana

Financial Group. HFG has established a microcredit business, a nursing home for the elderly, a childcare

center and Hana High School through the Hana Finance Public Welfare Foundation and the Hana Smile

Microcredit Foundation. Hana Bank is providing more than 95% of the funding for the aforementioned

activities carried out by the HFG.

217, 042, 500 won

Amount of Donations by Employees in 2010

Social Contribution

Team

Hana Smile Microcredit Foundation

Hana Financial

Group inc.

Hana High School

Hana Love Volunteer Corps.

Hana Puruni Childcare Center

Hana Care Center

Hana Finance Public Welfare

Foundation

▶ Social Contribution Team in the Group

▶ Amount of Donations by Employees by Year (Unit: million KRW)

2007 2008 2009 2010

0 50 100 150 200 250

7,210

Members as of December 2010

▶ Growing Number of Members of the Hana Love Volunteer Corps (Unit: Persons)

2007 2008 2009 2010

8000

7000

6000

5000

4000

3000

2000

1000

9000

●●●

●

●

●

●

●

Members of the Hana Love Volunteer Corps

Number of Hana Bank Employees among the Hana Love Volunteer Corps

Business Unit Dedicated to Community Outreach Programs

06Hana Love Volunteer Corps

07


Farm Volunteering Activity by Hana Love Volunteer Corps

하나키즈오브아시아 강의실 풍경 하나키즈오브아시아 강의실 풍경

Eco-friendly Bank Advocating an “Earth-friendly Bank,” Hana Bank promotes green management for the

environment. Under the banner of the “Green Bank on the Move,” we carry out green

initiatives at the individual, organizational and national levels with the “Green Footprint” as

the icon of green growth. Furthermore, we run a range of programs designed to minimize

environmental impact and raise awareness of environmental issues among community

residents. One remarkable achievement is the opening of a new concept flagship store

aimed to offer differentiated services combining environmental awareness with the culture

of philanthropy.

Winning Pieces from the 2010 Hana Green Poster Contest

Hana Bank strives to develop and raise awareness of environmental issues in local communities by

undertaking a variety of initiatives to preserve the environment. Some of our programs, such as Hana

Green Poster Contest, Hana Forest Exploration, Hana Green Concert, and Hana Forest Care, have taken

firm root as major environmental campaigns. In December, 2010, Hana Bank opened a brand flagship

store in the downtown area of Myungdong, the first of its kind in the finance industry. Under the

concept of a “Bank Growing Trees,” the store serves as a focal point of disseminating messages on

finance, the environment and community contribution.

A poster drawing contest for elementary school children in two

categories (the individual competition and the group competition),

with the winner of the group competition getting a “Dream Art

Room” built for their school

An activity for Hana Bank customers’ families to explore and experience

national forests near the metropolitan area

Concerts taking place across the country where audience enjoy musical

performances and realize the importance of the environment

A project to preserve the 133-hectare forest located in Sinron-ri, Yangpyung-

gun, Gyeonggi Province by checking up on the status of the forest,

developing walking trails and installing signs

Hana Green Poster Contest

Hana Forest Exploration

Hana Green Concert

Hana Forest Care

Programs to Raise Environmental Awareness

in Local Communities

01 Winning Pieces from the 2010 Hana Green Poster Contest

Down from the left,

2nd Prize, Jin Lee from Gimpo Elementary School, 6th grade

2nd Prize, Seulgi Kim from Chungryong Elementary School, 3rd grade

Special Selection, Chanhyung Jo from Gwangju Samyook Elementary

School, 1st grade

1st Prize, Sohyun Eum from Gyunggi Elementary School, 4th grade

Exhibition of Winning Pieces from the Hana Green Poster Contest


Hana Bank carries out various activities to lower the impact of our business operations on the

environment. These activities are divided under the headings of energy conservation, reduction in

paper consumption and use of eco-friendly supplies. Practices to minimize environmental impact help

Hana Bank to contribute to the cause of environmental preservation as well as an overall reduction in

operation expenses.

● Use scrap paper

● Recycle envelopes

● Recycle slips that have passed the storage requirement period ● Replace energy in use with eco-friendly energy sources

● Raise A/C temperature during the summer time

● Restrict elevator access to lower floors

● Run the “Save Energy / Save Korea” Campaign

● Run a campaign to recommend the public to abstain from driving on a selected day of the week and encourage the use of public transit

EnergyConservation

● Purchase eco-friendly office supplies

● Use recyclable cartridges

● Use of recycled paper for photocopying

● Use name cards made of recycled paper

Use of Eco-friendly Supplies

2008 2009 2010

572,249 574, 355 527,258

▶ Annual Paper Use (Unit : kg) ▶ Energy and Water Use

2008 2009 2010

14.699

●●

●20.368

19.405

106.7

●●

● 147

139.4

59,463

● ●

●

94,881 101,156

● ●

●

26.8 27.3

17.4

CO2 Emission (tco2)

Electricity Use(TJ)

Water Use(ton)

Gas Use(TJ)

1) Water Use includes waterworks use only; not the underground water use

2) CO2 Emission only includes emission from banks owned by Hana Bank

3) CO2 Emission is calculated based on Ministry of Environment’s 「Guide for Managing

Greenhouse Gases • Energy

Efforts to Save the Earth in Everyday Life through

Energy Conservation, Reduction in Paper, and

Use of Eco-friendly Supplies

02

Reduction in Paper Consumption

Opened in Myungdong under the concept of a “Bank Growing Trees,” the store encompasses green initiatives, philanthropy, community outreach and

entertainment. The store also collaborates with UNEP National of Korea and runs the donation drive with the visitors of Hana Brand Flagship Store for

Mangrove Forests, “the Earth’s Carbon Sinks”

Hana Brand Flagship Store

Hana Bank has chosen the Green Footprint as an icon for green growth. Feet are the body part placed

closest to nature and symbolize action to overcome challenges. The Green Footprint activities of Hana

Bank are further divided into the national, organizational and individual levels.

Hana Bank pursues green growth. Since the very beginning of our foundation, we have been at

the forefront of campaigns to promote green initiatives based upon our distinctive awareness

of environmental issues. In April, 2009, Hana Bank unveiled the Green Bank on the Move project,

declaring, both internally and externally, our strong commitment to environment-driven management

approaches. The Green Bank on the Move is an eco-friendly management program undertaken by

Hana Bank, which aspires to become a major player in environmentally-friendly management. We will

further strengthen our image as an environment steward by implementing the Green Bank on the

Move initiative based upon the three values: Green Growth, Field-oriented Management, and Health.

2009. 4. 16 ~ 5. 29

112,937,752

10,674,434

21,348,868

Season 1

2009.5. 30 ~ 9. 30

140,937,010

10,886,475

Season 2

2009. 10. 1 ~ 12. 31

70,089,635

15,466,995

Season 3

2010. 3. 22 ~ 6. 30

28,248,833

4,449,400

10,000,000

Global Love Sharing Campaign

Support for Multicultural Families

Season 4

UNEP National Committee for the Republic of Korea

Plant 1 Million Trees Campaign

52,506,940

World Vision Korea

Haiti Earth Quake Emergency Relief

Duration

Steps Taken

Collection

Donation

Beneficiary

Usage

Division

352,213,230

41,477,344

84,055,808

Total

Commitment of Hana Bank

to Green Management: “Green Bank on the Move”

03

Hana Bank will step up its efforts towards green management as a “Green Bank on

the Move.” In particular, we will strive to enlarge our “Green Footprint” and focus

on developing green programs and products which engage our employees and

customers in activities for the environment. We will continue to play a leading role

in raising awareness of environmental issues in local communities by setting good

examples through community contribution. We wish to contribute to building a

culture where all members of society volunteer for green growth initiatives.

An Icon for Green Growth, “Green Footprint”

04

Efforts at the National Level :

Take Part in Low Carbon,

Green Growth

As our efforts to take part in low carbon, green growth, we run a Car-

Free Day campaign by designating the first business day of the month as

a car-free day so as to encourage employees and customers to use public

transportation. Another campaign inaugurated by Hana Bank is the “Love

River Foot Relay,” a project to remove harmful plants from rivers.

As for our efforts at the organizational level, we provide loans to support eco-

friendly businesses. Private customers can open an S-Line Installment Savings

account or take out a -0.3℃ Loan. Furturmore, the Hana Solar Loan and the

Hana Installment Savings Sponsoring the International Suncheon Garden Expo

2013 are also available for companies involved in the environment industry.

Hana Bank runs such campaigns as the “Walk to Donate” and the “Show

Your Love for the Environment” to promote practical environmental activities

for its employees. The “Walk to Donate,” which was launched in March,

2009, counts the number of steps taken by employees using pedometers

to determine the amount of donation. With Season 4 completed in 2010,

the drive has raised a total of 41,477,344 KRW, donating 84,055,808 KRW to

several organizations. In addition to these large-scale campaigns, Hana Bank

hosts a series of small events such as “My Resolution,” where employees

recommit themselves to the cause of environmental stewardship.

Efforts at the Organizational

Level : Develop Various

Financial Products

Efforts at the Individual Level:

Join Programs such as the

“Walk to Donate” and the

“Show Your Love for the

Environment”


▶ Total Amount Raised through the “Walk to Donate” (Unit: steps, KRW)

.

Balls hanging from the ceiling of Hanaville, Hana Bank’s Training Center, symbolize the strong will of employees

Hana Bank values each and every one of the employees. Employees finding their work fulfilling and

enjoyable – that is the definition of a great company. Based upon the mission of “Employee Value

Creation as a Pleasant Workplace,” we have been stepping up our efforts to empower employees,

enhance the quality of life for employees, and establish a fair and open organization. We strive to

mobilize all resources to help employees to increase job proficiency and efficiency and lead pleasant

and happy lives through Capacity Building Program, Internal Communication Program, Employee

Wellness Program, and Anti-Discrimination Measures.

Talent Management

Hana Bank provides a wide range of training opportunities for the self-development of

employees. Programs like the Career Development Plan, the Leadership Program, CoP,

Hana Twitter, and Assistance for Finance-related Certificates enable employees to reinvent

themselves as more professional financial experts.

Leadership Programs

CoP**

The CoP is a field-oriented learning method, which seeks to depart from conventional ways of learning

to generate and share knowledge from diverse sources and perspectives. Each community is composed

of minimum six members, who hold meetings on- and off-line to study and find solutions to job-related

issues.

New-Turn

Launched in January, 2009, the New Turn, the next-generation knowledge-based management system,

maximizes the concepts of participation, sharing and opening and serves to promote communication

among employees. The components of New-Turn includes Knowledge Map composition, system

monitoring the entire procedure from proposals all the way to implementation, online collaboration

tool, Wiki, CoP and team rooms reflecting the elements of web 2.0 including blogs and library

management system

CDP*

The Career Development Plan has established a 3-stage basic skill set in each Career Field. The specified

and structured stage-based courses assist employees in developing their professional capacity.

Employee Empowerment

01

Leadership Programs include Hana Leadership Pipeline, leadership programs for branch managers

and for different positions on the corporate ladder, and programs to improve team coordination

and collaboration. Hana Leadership Pipeline is established to strengthen leadership by cultivating

three essential elements; organization; achievement; and innovation. Leadership programs for

branch managers and for different positions on the corporate ladder develop respectable leadership

skills for each position. As for programs to strengthen team collaboration, Hana Bank runs weekend

team-building retreats and cultural programs for employees’ families through invitations to festivals,

exhibitions and historical site visits.

*Career Development Plan

**Community of Practices


Farm Volunteering Activity CoP Meeting

Hana Bank runs wellness programs to contribute to the happiness of employees in the belief

that the happiness of employees is integral to the success of the employer. We provide

fringe benefits that ensure practical assistance for the lives of employees and run work-life

balance programs to meet the need to improve the quality of life.

Offer medical checkup for employees aged 35 and older and spouses aged 36 and older

Take out an insurance (covering spouses) for which the company pays the premium in

situations of diseases and natural disasters

Assume partial medical expenses in the case of employees and their families contracting

diseases

Offer rental housing for employees with dependents

Arrange temporary housing for employees assigned to offices far from home

Provide tuition assistance from kindergarten through college

Run a daycare center

Provide opportunities to stay and relax in holiday timeshare

Offer 2 years’ leave of absence before and after childbirth and for raising a child (1 year with

allowance)

Approve leave of absence for women going through infertility

Provide refreshing holidays to enhance quality of life for employees

Provide psychotherapists’ counseling for employees and their spouses (no restriction to

themes, confidentiality guaranteed), online education (mental fitness club, art of love, and

special lectures on stress measurement and prevention

Send gifts with cards celebrating birthdays and wedding anniversaries

Provide information to employees on wedding preparation and conflict resolution

counseling for couples soon to be married

Help employees to save expenses and time by introducing credible wedding planners

Provide opportunities to work out for employees aged 40 years and older or employees

with health problems such as obesity, high cholesterol, hypertension, etc.

Offer chances to exercise, such as workouts at gyms, swimming, yoga, aerobics, sports

dance, etc.

MedicalSupport

▶ Comprehensive Employee Benefits Package

Hana Bank does not discriminate against applicants, based on place of birth, gender, religion, or race. We are also

setting good examples by taking proactive steps to hire minorities in society including the disabled.

Hana Bank upholds performance-based compensation, applying the same standards for

workers engaged in identical functions, regardless of their gender. During the course

of our quantitative growth, the proportion of female employees has grown consistently

and the number of females in management-level positions or higher has been on the

rise.

● Implementation of the special employment test for patriots, war veterans and their children on two occasions

Hired 25 and 18 persons on November 2009 and December 2010, respectively

● Implementation of the special employment test for the disabled on two occasions

Hired 4 and 5 persons on May 2008 and June 2010, respectively

● Signing an agreement with the Korea Employment Promotion Agency for the Disabled to increase the number

of physically-challenged workers in the company in June, 2005

● Win an Official Commendation from the Minister of Patriots and Veterans Affairs

Won a Man of National Merit in the 2009 Veterans Month

● Anti-Discrimination in Employment

Appointment of the first female executive in 2011

● Distinguished Performance of Chinese Employees

High customer satisfaction at the Guro-dong branch and other branches with Chinese employees and personal

development opportunities for Chinese employees

▶ Percentage of Female Workers in Management-level Positions or Higher

2006 2007 2008 2009 2010

6.6

6.4

6.2

6

5.8

5.6

● ●●

●

●

“Hana Bank is dedicated to providing fair treatment to all employees in the entire

process of human resources management ranging from hiring to performance

appraisal to remuneration and bonus.”

Refreshing Holiday

Oh Happy Day

Finding Happiness

WeddingSupport

HealthcareSupport

Enhance Quality of Life through Employee Benefits

02Anti-Discrimination Measures in Employment and Remuneration

03

Gender Equality and Fair

Compensation

Housing

Support

Tuition

Assistance

Supportfor Female

Employees


(Unit : %)

A. Financial Statement

Key Performance Data

Description

Asset

Cash & Due from Banks

Securities

Loans

Tangible Assets

Other Assets

Total Assets

Liabilities

Deposits

Borrowings

Other Liabilities

Total Liabilities

Shareholder’s Equity

Capital Stock

Capital Surplus

Capital Adjustments

AOIG*(Loss)

Retained Earnings

total Shareholder’s Equity

Total Liabilities and

Shareholder’s Equity

Balance Sheet (Bank Account) (Unit: million KRW)

70th

5,981,378

21,278,617

103,631,324

1,052,865

7,021,090

138,965,274

93,388,587

24,721,256

12,514,192

130,624,035

1,147,404

2,726,159

-2,973

477,490

3,993,159

8,341,239

138,965,274

69th

6,128,872

21,309,657

98,839,085

1,082,843

8,148,332

135,508,789

89,884,425

25,448,303

10,963,825

126,296,553

1,147,404

2,724,149

-176,338

313,178

5,203,843

9,212,236

135,508,789

Description

Operating Revenues

Operating Expenses

Operating Income

Non-Operating Revenues

Non-Operating Expenses

Income Tax

Profit of Continuing Operation

Profit of Discontinued Operation

Net Income

Income Statement (Bank Account) (Unit: million KRW)

70th

18,184,407

16,848,150

1,336,257

72,070

93,909

329,305

985,113

-

985,113

69th

24,546,434

24,184,218

362,216

67,066

99,734

87,803

241,745

32,185

273,930

Description

Assets

Cash & Due from Banks

Securities

Loans

PPCB*

BPRA**

Money Receivables

Movables & Real Estate

Other Assets

Loans to Banking Account

AVR***

Total Assets

Liabilities

Money in Trust

Property in Trust

Public in Trust

Mortgage Bond Trust

Other Liabilities

Special Provisions

Total Liabilities

Balance Sheet (Trust Account) (Unit: million KRW)

70th

1,484,886

4,702,475

181,081

40,000

1,952,000

1,466,826

5,129,521

143,399

419,285

-145

15,519,328

8,711,495

6,382,878

16,766

230,000

149,899

28,289

15,519,328

69th

700,999

5,798,941

198,944

1,054,999

1,388,000

1,421,694

5,235,949

148,677

675,487

-179

16,623,511

7,997,060

8,049,828

16,767

373,656

156,502

29,698

16,623,511

Description

Revenues

Interest on Due from Banks

IDS*

Interest on Loans

IPPCB**

IRA***

Other Interest Income

GDT****

Gain on Securities

Commissions Received

Other Revenues

ILBA*****

Reversal of Special Provisions

RAC****** loss

Total Revenues

Expenses

Gain on Money Trust

Gain on Property Trust

Gain on Public Welfare Trust

Commission Paid

Loss on Derivatives Transactions

Expenses on Securities

Contribution Fees to Fund

Trust Fees & Commission

Other Expenses

Provision for Special Revenues

PACL******* Loss

Total Expenses

Income Statement (Trust Account) (Unit: million KRW)

70th

40,213

217,592

11,029

46,218

38,196

33

1

101,026

1,866

1,425

16,794

1,747

538

476,678

354,202

46,983

714

1,162

60

41,101

133

31,892

89

338

4

476,678

69th

44,196

240,828

3,716

61,988

18,727

196

49

71,695

2,388

611

17,698

1,465

1,383

474,940

291,429

100,266

586

581

178

50,601

154

29,575

-

1,530

40

474,940

* Accumulated Other Inclusive Gain * Private Placement Corporate Bonds

** Bonds Purchased under Resale Agreements

*** Allowance for Valuation of Receivables

* Interest and Dividends on Securities

** Interest on Private Placement Corporate Bonds

*** Interest on Repurchase Agreements

**** Gain on Derivative Transactions

***** Interest on Loans to Banking Account

****** Reversal of Allowance for Credit

******* Provision for Allowance for Credit Losses


B. Financial Data and Economic Value Generation and Distribution

Pre-Provision Income

General Operating Income

Net Income

Net Interest Margin(NIM)

Return On Assets(ROA)

Return On Equity(ROE)

Total Assets(Bank Account)

Total Liabilities(Bank Account)

Standard and Below Loan Ratio

Ca S&BL*

Loan to Deposit Ratio1)

BIS Capital Adequacy Ratio2)

Delinquency Ratio3)

Dividend

Dividend Ratio

Salary 4)

Other Employee Benefits

Donation

Financial Data (Unit: billion KRW, %)

2010

1,945

3,187

985

1.93%

0.70%

10.47%

138,965

130,624

1.50%

106.2%

104.7%

14.04%

0.54%

1,934

176.0%

539.2

114.9

58.8

2009

1,112

2,405

274

1.68%

0.19%

3.03%

135,509

126,297

1.05%

129.9%

113.2%

14.98%

0.51%

87.9

8.0%

584.2

102.3

77.9

2008

1,777

3,029

475

2.06%

0.34%

5.94%

146,597

137,685

1.20%

126.8%

105.3%

13.51%

0.86%

0.0

0.0%

521.0

117.8

42.3

2007

1,988

3,232

1,052

2.31%

0.93%

13.97%

116,941

109,225

0.77%

169.1%

105.9%

11.75%

0.64%

460.0

49.0%

552.7

105.6

22.0

2006

1,807

2,917

1,046

2.40%

1.06%

15.97%

110,852

103,970

0.69%

172.6%

100.9%

11.34%

0.77%

338.0

36.0%

536.2

92.4

46.4

Net Interest Profit (Loss)

NPVDS*

NPVDLR**

NPFET***

Net Profit (Loss) on Commission

Net Profit (Loss) on Trust

Dividend on Securities

Other Operating Profit (Loss)

AE****

Non-Operating Profit *****

Total

Economic Value Generation (Unit: million KRW)

2010

2,619,129

308,327

-611,871

-182,795

406,472

40,513

37,130

-38,488

588,018

36,967

3,203,402

2009

2,026,737

179,686

-726,805

-260,263

366,929

37,362

24,021

-11,355

602,307

45,256

2,283,875

Dividend

Net Income - Dividend

Taxes

SSRB******

Donation

Depreciation and Amortization

Total

Economic Value Generation (Unit: million KRW)

2010

1,934,232

-949,119

385,817

654,104

58,806

141,275

2,225,115

2009

87,920

186,010

157,076

686,527

77,924

145,283

1,340,740

C. Economic Value Generation

Sustainable Finance (Unit: million KRW)

Public Trust Fund Raised

2010 2009

16,637

2008

2007 2006

24,736

Customer (Unit: Point, Case)

NCSI Survey Results

FSC-Registered Customer Complaints Trends

2010

72

321

2009

70

555

2008

70

529

2007

70

372

2006

73

413

Employee (Unit: Person, %, million KRW)

No. Employees1)

No. of Female Employees

Proportion of female employee

Female Employees*

Proportion of female employees**

Recruitment Trend

Retirement Trend2)

Recruitment Status of Disabled Workers

Salary of New Recruits***

Other Employee Benefits (Discretionary)

Other Employee Benefits (Statutory)

Work-Related Accidents Case

2010

9,282

5,501

59.6

66

6.5

860

1,140

58

305.3

77,290

37,640

4

2009

9,614

5,804

60.7

61

6.4

707

1,289

56

313.7

62,888

39,443

7

2008

10,913

6,747

62.2

66

5.9

1,714

739

68

470.2

77,685

40,105

5

2007

10,099

6,143

61.2

60

6.0

2,013

861

65

468.1

67,912

37,702

3

2006

9,230

5,317

57.9

57

6.1

1,240

537

53

464.9

48,217

27,823

5

2006

627

2007

350

2010

625

Local Community Contribution (Unit: 100 million KRW)

Social Contribution Spending

2009

849

2008

631

Environment

Electricity Use

Gas Use

Water Use

CO2 Emission

2010

139.4

27.3

101,156

19,405

2009

147

26.8

94,881

20,368

2008

106.7

17.4

59,463

14,699

2007

108.2

29.1

99,814

15,461

2006

99.8

30.3

87,835

14,432

1) Loan to Deposit Ratio was calculated monthly due to the revision in banking audit process.

2) BIS Capital Adequacy Ratio has been calculated based on Base II since 2008.

3) Delinquency Ratio has been calculated based on the new standard since 2007.

4) Salary is Salary + Retirement Allowance + Voluntary Retirement Allowance.

SME Loans

Proportion of SME Loans to Total Corporate Loans in KRW

No. of CDs and ATMs

293,777

32.8

4,236

309,637

36.9

4,245

301,126

37.2

4,286

270,945

38.9

4,120

240,466

38.9

3,894

(Unit: million KRW, %, Unit)

(Unit :TJ, ton, tco2)

1) Water use includes waterworks use only; not the underground water use 2) CO2 Emission only includes emission from banks owned by Hana Bank 3) CO2 Emission is calculated based on Ministry of Environment’s 「Guide for Managing Greenhouse Gases • Energy management by objectives」

1) Workers hired in the second half of the year 2010 (262persons), workers hired in year ’10 who were assigned in year ‘11 are not added 2) Contract workers based on the law for short-term workers issued in July 2009 (Fast Teller, Office Worker, Call Center, Individual Contract Workers) 3) Work-Related Accidents Cases are calculated on the accidents approval date4) Recruitment Status of Disabled Workers are calculated on the last day of each year

* Coverage against Standard and Below Loan

* Net Profit (Loss) on Valuation and Disposal of Securities

** Net Profit (Loss) on Valuation and Disposal of Loan Receivable

*** Net Profit (Loss) on Foreign Exchange Trading

**** Administrative Expenses (Excluding Salary and etc.)

***** Non-Operating Profit (Loss) (Excluding Donations)

****** Salary, Severance and Retirement Benefit* Female Employees at Management-level Positions or higher ** Proportion of female employees at Management-level positions or higher *** Salary of New Recruit relative to Minimum wage


Third Party’s Assurance Report

▒ Our independence With the exception of providing third party verification services, KMAR is not involved in any other Hana Bank

business operations that are aimed at making profits in order to avoid any conflicts of interest and to maintain

independence.

▒ Verification scope Hana Bank described its efforts and achievements of its sustainability activities in the Report. The

verification process was designed to provide readers with the following information;

● Verification of the economic section

Review whether financial performance data has been extracted appropriately from Hana Bank’s 2010

Financial Statements Audit Report and Annual Report as defined in the Report’s performances and

conclusion sectors

● Verification of environmental and social section

Review whether environmental and social information included in the Report is presented appropriately.

“Appropriately Presented” means that the actual data and the original information are appropriately reflected

in the contents of the Report with consistency and reliability. For the economic sector, we based our evidence

gathering procedures on reasonable assurance. It is a higher level of assurance than the limited verification in

terms of characteristics and the extent of performed tasks.

▒ Verification standards

KMAR performed the review based on our own verification. We also used the International Auditing

and Assurance Standards Board-issued “International Standard on Assurance Engagements (ISAE 3000):

Assurance Engagements other than Audits or Reviews of Historical Financial Information” as additional

guidelines.

▒ Foreword

The Korea Management Association Registration and Assessments (KMAR) had been

engaged by Hana Bank to verify the contents of its 2010 Sustainability Report (the

Report). Hana Bank is responsible for the collection and presentation of information

within the Report. Our responsibility is to carry out assurance activities on specific

information in the verification scope stipulated below

Dear Readers of 2010 Hana Bank Sustainability Report

▒ Verification process and conclusion In order to form our conclusion, KMAR undertook the steps outlined below to assess Hana Bank’s internal

processes for reviewing the sustainability reporting practices.

- Surveyed Hana Bank’s sustainability related media information during the reporting period

- Reviewed systems and processes used in producing data

- Assessed internal documents and materials

- Interviewed people in charge of disclosed activities and performances

Based on the results we have obtained from material reviews, related department visits and interviews,

we held several discussions with Hana Bank on the revision of the Report. We reviewed the Report’s final

version in order to confirm whether our recommendations for improvement and revisions have been

reflected.

● Economic performance

We compared the Report with Hana Bank’s 2010 Financial Statements and found that the financial data

presented in the Report has been appropriately derived from 2010 Financial Statements.

● Environmental and social performance

We observed that the information contained in the environmental and social sections has been appropriately

presented. We did not discover any significant errors.

▒ Recommendation for improvement

We hope Hana Bank’s publication of the Report is actively used as a communication tool with stakeholders

and recommend the following for improvements.

- Improve the materiality test process by understanding stakeholder’s expectations and reflecting them

- Conduct analytic review on the sustainability performances and improve them

- Develop the manual to manage and report sustainability performance data

April 26, 2011

Korea Management Association

Registrations & Assessments Inc. CEO : Ki Ho Park


Administrator : CHRO Young Ho Lim

Executive Support Office, Business Administration HQ, Sociocultural Team, Trust HQ, Hana Smile Microcredit

Foundation, Retail Business HQ, Medium Business HQ, Small Business HQ, New Business Promotion HQ, Marketing

Strategy PR Team, HR Development HQ, Secretary Support HQ, HR Support HQ

* Your feedback is always welcome

Marketing Strategy PR Team Tae Hee Jeon

Direct tel: +82 2 2002 1786, E-mail: [email protected]

2010 Hana Bank Sustainability Report

Documents

This Report was printed with soy ink on FSC certified ... · 2010 Hana Bank Sustainability Report Elemental Chlorine Free paper(ECF) This Report was printed with soy ink on FSC certified